Cabot (CBT) investor relations material

Executive summary

• Fiscal 2025 Adjusted EPS rose 3% year-over-year to $7.25, with diluted EPS at $6.02, despite lower volumes and challenging macroeconomic and geopolitical conditions.

• Adjusted EBITDA reached $804 million, up 3% year-over-year, with a 22% margin, and adjusted ROIC was 18%.

• Strong cash flow generation supported $264 million returned to shareholders via $96 million in dividends and $168 million in share repurchases.

• Strategic progress included the acquisition agreement for Bridgestone's reinforcing carbon plant in Mexico and advancements in battery materials.

• Performance Chemicals segment EBIT increased 18% year-over-year, offsetting a 5% decline in Reinforcement Materials EBIT.

Financial highlights

• Fiscal 2025 net sales were $3.71 billion, down from $3.99 billion in 2024; adjusted EBITDA was $804 million with a 22% margin.

• Operating cash flow for fiscal 2025 was $665 million; free cash flow was $391 million.

• Ended Q4 with $258 million in cash and $1.5 billion in liquidity; net debt to EBITDA at 1.2x.

• Capital expenditures totaled $274 million for the year; Q4 capex was $64 million; FY26 capex expected at $200–$250 million.

• Fiscal 2025 net income attributable to shareholders was $331 million.

Outlook and guidance

• Fiscal 2026 Adjusted EPS is expected to be in the range of $6.00 to $7.00, reflecting continued macroeconomic and trade uncertainty.

• Reinforcement Materials EBIT expected to decrease sequentially in Q1 FY26 by $15–$20 million due to lower volumes and increased competition.

• Performance Chemicals EBIT expected to remain consistent in Q1 FY26, with modest volume improvement offset by higher costs.

• Cash flow from operations expected to remain strong, funding capex, dividends, and $100–$200 million in share repurchases.

• Operating tax rate for fiscal 2026 is projected at 27% to 29%.